Simple yet tough question, taxonomies are just groups of categories, while terms are just single categories within these groups.*
So, for example, if you create a new post and choose category for it – the category itself is a term, and opening YourWordpressURL/wp-admin/edit-tags.php?taxonomy=category
you’re going to see all the categories (taxonomy).
Terms and Tags are similar at first glance, they just work differently:
http://lorelle.wordpress.com/2005/09/09/categories-versus-tags-whats-the-difference-and-which-one/
http://www.usabilitypost.com/2008/10/17/categories-vs-tags/
*this is possibly sometimes not true, as terms don’t have to be categories, but I hate word “terms”, it just confuses me, categories fits better
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